Year of Graduation
Return to Education in Russia
This paper presents an evaluation of rates of return to education in Russia using RLMS data for the year 2017. By using a modified Mincer method and Heckman procedure for selection bias correction, we get a series of premium estimates for the highest level of education received by individuals. The estimates obtained by modified Mincer equation are 14.11% for secondary education; 12.19% for vocational education; 56.21% for bachelor's or specialist's degrees and 64.87% for master's degree and above. After correction for selection bias, our estimates reduces to 13.88%, 2.22%, 39.1% and 45.35% respectively. Our research shows that bachelor's or specialist's degrees have the greatest marginal effect in terms of investment in education. After comparing obtained rates of return to education with previous ones, we can not agree with the forecasts about the diminishing economic value of education.